HOUSE BILL REPORT
ESB 5559
As Passed House - Amended:
April 10, 2025
Title: An act relating to streamlining the subdivision process inside urban growth areas.
Brief Description: Streamlining the subdivision process inside urban growth areas.
Sponsors: Senators Lovelett, Nobles and Trudeau.
Brief History:
Committee Activity:
Local Government: 3/14/25, 3/21/25 [DPA];
Appropriations: 4/3/25, 4/5/25 [DPA(APP w/o LG)].
Floor Activity:
Passed House: 4/10/25, 95-0.
Brief Summary of Engrossed Bill
(As Amended by House)
  • Requires cities and towns that plan under the Growth Management Act to adopt procedures for unit lot subdivision and establishes specific requirements for the procedures.
HOUSE COMMITTEE ON LOCAL GOVERNMENT
Majority Report: Do pass as amended.Signed by 7 members:Representatives Duerr, Chair; Parshley, Vice Chair; Klicker, Ranking Minority Member; Stuebe, Assistant Ranking Minority Member; Griffey, Hunt and Zahn.
Staff: Elizabeth Allison (786-7129).
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: Do pass as amended by Committee on Appropriations and without amendment by Committee on Local Government.Signed by 30 members:Representatives Ormsby, Chair; Gregerson, Vice Chair; Macri, Vice Chair; Couture, Ranking Minority Member; Connors, Assistant Ranking Minority Member; Penner, Assistant Ranking Minority Member; Schmick, Assistant Ranking Minority Member; Berg, Bergquist, Burnett, Caldier, Callan, Corry, Cortes, Doglio, Dye, Fitzgibbon, Keaton, Leavitt, Lekanoff, Manjarrez, Marshall, Peterson, Pollet, Ryu, Springer, Stonier, Street, Thai and Tharinger.
Staff: Jackie Kauble (786-7125).
Background:

Subdivisions and Plats.

Counties, cities, and towns are subject to laws regarding the subdivision of land.  Subdivision is the division or redivision of land into five or more lots, tracts, parcels, sites, or divisions for the purpose of sale, lease, or the transfer of ownership.  A subdivision of land into four or fewer lots is called a short subdivision.  A city or town may increase the number of lots that can be regulated as short subdivisions up to a maximum of nine.  Counties planning under the Growth Management Act (GMA) may do the same with unincorporated land within an urban growth area.  Subdivisions and short subdivisions must comply with local ordinances around zoning, road standards, shorelines, utilities, and drainage.

 

Plats and short plats are maps or representations of subdivisions and short subdivisions that show the division of land into lots, streets, alleys, dedications, and easements.

 

A city, town, or county must adopt regulations and procedures and appoint administrative personnel for summary approval of short plats and short subdivisions.  Regulations and procedures for short plats and short subdivisions must be adopted by ordinance and provide that a short plat or short subdivision may be approved only if written findings regarding the public use and interest to be served by the subdivision are made by the administrative personnel.  Such regulations may contain wholly different requirements than those governing the approval of preliminary and final plats and may require surveys and monumentations.  The regulations must require filing of a short plat, an alteration, or a vacation and must require that land in short subdivisions may not be divided further within a five-year period without the filing of a final plat, with exceptions.

 

If an ordinance requires a survey, the survey must be completed and filed with the application for approval of the short subdivision.

 

Cities, towns, and counties must include provisions for considering sidewalks and other planning features that assure safe walking conditions for students in their short plat regulations.  Cities, towns, and counties must also include procedures for unit lot subdivision, allowing the division of a parent lot into separately owned unit lots.

 

If an alteration or vacation of a subdivision involves a public dedication, the alteration or vacation must be processed through a specific procedure.

 

Growth Management Act.

The GMA requires that certain counties, and the cities within those counties, engage in planning for future population growth.  The GMA directs these counties and cities to adopt internally consistent comprehensive land use plans, which must be reviewed and, if necessary, revised every 10 years.  These counties and cities also must adopt development regulations to implement their comprehensive plans, which include a variety of land use regulations.  The 10-year review and revision deadlines are staggered for different counties.

Summary of Amended Bill:

The requirement that cities, towns, and counties include provisions for unit lot subdivision is changed to require cities and towns located within a county planning under the GMA to adopt procedures for unit lot subdivision.  The procedures must include at minimum the requirement that prominent informational notes be placed on the unit lot subdivision's plat and recorded in the county in which the land is located.  The notes must acknowledge that:

  • approval of the design and layout of the unit lot's housing development project was granted based on detailed review of the specified project, including reference to the applicable permit or file number;
  • subsequent subdivision actions, additions, or modifications to the unit lot housing development project's structures may not create or increase any nonconformity of the parent lot as a whole and will conform to the approved housing development project or land use and development standards in effect at the time;
  • if a structure or portion of a structure within the unit lot housing development project has been damaged or destroyed, any repair, reconstruction, or replacement must conform to the approved unit lot housing development project or to the land use and development standards in effect at the time the proposed permit application becomes vested; and
  • additional development or redevelopment of the individual unit lots may be limited as a result of the application of development standards to the parent lot.

 

The procedures must also:

  • not require any public predecision meeting or hearing or any design review other than administrative design review, except for those required to comply with state law, including the Shoreline Management Act;
  • apply only clear and objective design and development standards;
  • be logically integrated with the application, review, and approval procedures that apply to the underlying unit lot housing development project to the greatest extent feasible; and
  • be specifically subject to the maximum time period for local government actions, unless an extension is granted pursuant to project-specific mutual agreement.

 

Cities must ensure that the community and property owners within 250 feet of a unit lot to be subdivided are provided notice of how to provide written comments to the administrative decision maker.

 

Cities and towns that are required to submit their next comprehensive plan update in 2027 must incorporate these requirements into their development regulations, zoning regulations, and other official controls in their next comprehensive plan update.  All other cities and towns must implement these requirements within two years of the bill's effective date.  After the requirements have been implemented, no city or town may decline to accept, process, or approve an application for unit lot subdivision solely because that city or town has not completed adoption or enactment of these procedures.

 

Cities and counties are not prohibited from applying public health, safety, building code, and environmental permitting requirements to a development project that is subject to or integrated with a unit lot subdivision process.  Cities and counties are not required to authorize a development project or unit lot subdivision in a location where development is restricted under other laws, rules, or ordinances.

 

A unit lot is a subdivided lot within a residential development as created from a parent lot and approved through the unit lot subdivision process.

 

A parent lot is a residential lot that is subdivided into unit lots.

 

Unit lot subdivision is a subdivision or short subdivision proposed as part of a residential development project that meets development standards applicable to the parent lot at the time the application is vested, but which may result in development on one or more individual lots becoming nonconforming as to specified land use and development standards based on the analysis of the individual unit lot.

Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony (Local Government):

(In support) Smaller footprint lots need to be accommodated.  A person might own a condominium but be required to enter into a homeowners' association to manage the underlying land, and as middle housing is built in communities there is a need for people to own the dirt under their homes.  This bill improves on the existing process and uses an instrument that is already familiar to planners, cities, and hearing examiners.  This bill has been worked to a place where realtors, builders, and cities are all on board with the process.  One of the problems with subdividing a piece of property is ensuring that it is able to be developed.  The bill provides clarity and structure to a relatively newer but increasingly popular subdivision method.  Two years ago the Legislature passed a bill that required cities, towns, and counties to adopt procedures for unit lot subdivision, but the bill didn't provide any additional guidance.  The intention is that jurisdictions who have adopted procedures for unit lot subdivision will not have to do anything different.  This bill will provide a helpful framework for jurisdictions that have not adopted unit lot subdivision procedures.  More homes need to be built and this bill provides a tool to help make that happen.  Procedural clarity directly translates to more affordable housing opportunities.  This bill is a practical solution to the housing affordability crisis through increased supply.  This bill is very useful for townhomes.  The objective standards and limits on the public process are appreciated.  The Department of Commerce published a fact sheet on unit lot subdivisions.  There are some differences between this bill and the fact sheet that could be reconciled.  Unit lot subdivisions can work in non-GMA cities and counties and promote more homeownership opportunities.  Land is a significant part of the cost in new development.  Splitting lots makes them more affordable.  The definitions in this bill should be synced up with House Bill 1096.  There should be some clarification around scenarios where there would not need to be a predecision meeting or public hearing.  The Department of Commerce should provide guidance within one year rather than six months.

 

(Opposed) None.

Staff Summary of Public Testimony (Appropriations):

(In support) The unit lot subdivision process is one that cities are already required to have, but this bill further refines and standardizes that process.  It has been successful in creating townhouse-type projects of four to nine units in a number of cities.  Land is a big cost driver when it comes to building new housing.  The land is typically a third of the cost of building new housing units and allowing for more divisions of land so that the price point comes down is a step in the right direction.  The hope is this will allow people to own the dirt underneath their homes, whether it be townhouses or other forms of middle housing.  This is important because people typically prefer to own their land.  It is more attractive to buyers but also for lenders who are more comfortable if the land and the housing is attached. 

 

This is a relatively modest investment to update and improve a current system.  The benefit to the budget is that you are going to see increases in sales tax from construction as more of these projects move forward, as well as other taxes as we start to see more of these projects coming online.  This is beneficial for the budget, but important in meeting our housing supply need.  This is a nice complement to other legislation like the lot splitting bill and the condominium bill.

 

(Opposed) None.

Persons Testifying (Local Government):

Senator Liz Lovelett, prime sponsor; Ryan Donohue, Habitat for Humanity Seattle-King and Kittitas Counties; Riley Benge, Washington REALTORS; Scott Hazlegrove, Master Builders Association of King and Snohomish Counties; Scott Bonjukian; Brent Ludeman, Building Industry Association of Washington; Carl Schroeder, Association of Washington Cities; Briahna Murray, Cities of Kent, Redmond, and Tacoma; and Chris Collier, APA Washington.

Persons Testifying (Appropriations):

Andrea Smiley, Building Industry Association of Washington; Scott Hazlegrove, Master Builders Association of King and Snohomish Counties; and Bill Clarke, WA REALTORS.

Persons Signed In To Testify But Not Testifying (Local Government): None.
Persons Signed In To Testify But Not Testifying (Appropriations): None.